Middle Eastern crude oil benchmarks have surged to unprecedented levels, becoming the most expensive in the global market as the ongoing conflict involving Iran disrupts regional supply routes.
The price spike was reported this week as the war continues to limit the movement of oil tankers through the vital Strait of Hormuz.
According to pricing agency S&P Global, Cash Dubai crude for May-loading cargoes reached a record $157.66 per barrel on Tuesday, surpassing the historic peak of Brent crude futures which last hit $147.50 in 2008.
At the same time, Oman crude futures also climbed sharply to $152.58 per barrel, highlighting tightening supply in the region.
The sharp rally comes as exports of Middle Eastern crude to Asian markets dropped significantly in March.
Data from analytics firm Kpler shows shipments fell to 11.665 million barrels per day, down from nearly 19 million barrels per day in February, largely due to disruptions to tanker traffic caused by the conflict.
Asian refiners are now struggling with higher costs and shrinking supply, forcing some plants to scale back operations or seek alternative crude sources.
Industry traders say the surge in benchmark prices may also reflect distortions in pricing mechanisms as fewer crude grades are available for delivery in the market.
Market participants have questioned whether the current Dubai and Oman benchmarks still accurately represent the broader Middle Eastern crude market.
Some refiners argue that the reduced number of deliverable grades has inflated prices and weakened the benchmark’s relevance.
Meanwhile, European energy major TotalEnergies has emerged as a dominant buyer in the trading window, purchasing 42 cargoes of Oman and Murban crude, equivalent to about 21 million barrels, according to trading data.
With Middle Eastern supplies tightening, Asian refiners are increasingly turning to crude from Africa and the Americas.
Traders report that premiums for Brazilian crude have surged to $12–$15 per barrel above dated Brent, while prices for West African cargoes have also climbed as buyers scramble for alternative supply.